Seamless intimate apparel producer posts Q4 2007 results

29 Mar '08

3 min read

profitability than those of the Seamless products, also reduced profitability. Finally, the short-term manufacturing challenges faced in the Hi-Tex division continued into the fourth quarter. As discussed in the prior quarter, these challenges are mainly due to the learning curve required for the manufacture of various new and complex products, which are technologically advanced and have been ordered in short production runs for a larger number of apparel categories.

Full year 2007 revenues were $158.6 million, representing a 15.7% decrease from 2006 revenues of $188.1 million. The decline in revenue was primarily due to a reduction in sales of active-wear products, primarily to Nike, reduced sales of intimate apparel, mainly to Victoria's Secret for older Cut & Sew collections, and a slight decline in sales of swimwear.

Full year 2007 gross margin decreased to 12.3%, compared with 22.8% as reported in 2006. Operating income was $1.8 million (1.1% of revenues) compared with an operating income of $25.9 million (13.8% of revenues) as reported in 2006. Net income was $483 thousand (0.3% of revenues), or $0.02 per diluted share, compared with $18.4 million (9.8% of revenues) or $0.89 per diluted share, as reported in 2006.

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